COVID-19 & Finances: Is Bankruptcy For You?

            The COVID-19 pandemic continues to plague our country as millions are out of work. Recognizing the monumental task before it to stave off depression, the Federal Government passed the CARES Act. This Act provided various forum of relief, but the most well-known include providing some families with a one-time, tax-free stimulus payment and increased unemployment insurance.  Still, families are struggling to find ways to pay the bills during the pandemic. During this period of financial and employment uncertainty, many individuals are considering bankruptcy to try to save their homes, keeping their cars, or discharge debt they can simply no longer afford after months of joblessness.

A common misconception is that bankruptcy means “losing” every single asset that you possess. This is simply not true. The Bankruptcy Code provides for many exemptions found in either federal or state regulations that helps people keep many of their assets in most circumstances. Others reorganize their debt through a Chapter 13 plan to help permit the debtor to keep their home. Though potential filers are restricted in how often they can file a bankruptcy, it is unquestionably a useful means to help provide relief to those in considerable debt, and the fresh start that is promised under the Bankruptcy Code. During the COVID-19 pandemic, the United States Bankruptcy Court for the District of New Hampshire remains opens for electronic filing of all bankruptcy petitions. Most hearings are being accomplished by telephone or internet video conferencing. 

            Bankruptcy is not right for everyone, but if you are enduring new or old significant financial hardship, it may be right for you. Filing for bankruptcy need not be a daunting or embarrassing process. Rather, many are quite thankful for the relief a bankruptcy filing can provide after months of angry phone calls, threatening letters and dealing with creditors. Many debtors attempt to resolve their problems by liquidating assets they may not need to relinquish, take on loans that may not be dischargeable, or borrow money from friends and relatives that if paid back, may result in a preference payment. Anyone struggling with debt, should speak with a bankruptcy attorney to see if it is right for them. There are many more issues in bankruptcy that require decisions based on the right time to file that only a bankruptcy attorney can provide.

At Parnell, Michels & McKay, we offer over four decades of experience in navigating the difficult bankruptcy and debt collection fields. Nancy Michels and David Stamatis will help you determine the right type of relief, if any, is best for you. Our firm offers hands on advice, and will go through all of your finances to determine what the best method is for you to address your climbing debt.

            A bankruptcy filing does not mean you failed; it means you were strong enough to get help so you could start again. If you find yourself concerned about your financial future during COVID-19, contact the experienced attorneys at Parnell, Michels & McKay today to see how we can help you navigate your debt problems.

NOTICE: Pursuant to § 528 of the Bankruptcy Code, our law firm is a debt relief agency. We help individuals file for bankruptcy relief under the Bankruptcy Code.

EVICTIONS DURING THE COVID-19 STATE OF EMERGENCY

                The COVID-19 pandemic has created very difficult situations for many people. In the context of landlord/tenant relationships, it has created significant concerns among both landlords and tenants about what their rights are.

                Before the pandemic and emergency orders, evictions were conducted through the process outlined in RSA 540. While this process is still the law of New Hampshire, it has been modified significantly by Governor Sununu’s emergency orders. The first modification was Emergency Order #4 (found here: https://www.governor.nh.gov/sites/g/files/ehbemt336/files/documents/emergency-order-4.pdf). This provides that any attempt to begin or prosecute eviction actions would likely be deemed a violation of RSA 540-A, New Hampshire’s prohibited practices statute for landlord/tenant relationships. These violations could result in a fine of $1,000, attorney’s fees, and double or treble damages. This was designed to protect those who have lost jobs and cannot afford to pay their rent.

                Like most rules, there are exceptions. The Governor issued Emergency Order #24 (found here: https://www.governor.nh.gov/sites/g/files/ehbemt336/files/documents/emergency-order-24.pdf), which modified the above emergency order #4. This allowed evictions to proceed where there are lease violations that cause substantial damage, or substantially adversely affect the safety of other persons in the residence. It also allows evictions to proceed where the tenant has abandoned the property.

                While it is unknown how long the emergency orders will remain in effect, it is important to seek the assistance of a legal professional if you find yourself either facing an eviction, or if you are a landlord with a tenant that has caused distress or is simply not paying rent.

                If you need assistance, please contact the experienced lawyers at Parnell, Michels & McKay.

NEW STATUTE MAKES IT EASIER TO SUBMIT MEDICAL BILLS AT TRIAL SAVING VALUABLE TIME FOR MEDICAL FACILITIES

                In an effort to make trials easier, and the burden less on medical providers, Parnell, Michels & McKay’s own Rory Parnell provided substantial input and testimony relative to the new bill known as RSA 516:29-c, which allows medical bills to be submitted without the need to call the keeper of the records or doctors to testify the records are accurate.

                This effort was made primarily to make it easier on medical providers to submit bills and not subject their office manager, record keepers, or managing doctors to be forced to testify by insurance defense counsel to submit simple medical bills. While this is allowed for all cases where the medical bills are lower than $25,000, it is an important step for lessening the burden on local medical providers and their staff.

                This also benefits normal working folks who are injured due to no fault of their own in keeping trial costs down, and making it easier to try a case. This also reduces court time, and allows courts and juries to focus on important issues in cases.

                While the insurance industry was not supportive of the idea, there were various attorneys who practice insurance defense who recognized the efficiency of this new statute. Moreover, many medical providers were in support of the bill, which allowed them to focus on treatment of their patients.

                If you need assistance because you were injured in a car accident, motorcycle accident, trucking accident, workplace injury, or other injuries, contact the experienced attorneys at Parnell, Michels & McKay to get the fair resolution you deserve.

COVID-19 Parenting Orders and Modifications

COVID-19 continues to present many challenges to New Hampshire and its families. With the Governor’s directive limiting gathering significantly, closing schools, and asking many people to work from home, families have been inundated with concerns about their current parenting orders or obtaining new ones.

Please note that this article should not be read for any one person’s particular situation or be interpreted as legal advice. Everyone’s situation is different, and if you have legal concerns regarding interpretation or modification of a parenting plan, you should speak with one the family law attorneys at Parnell, Michels & McKay.

NH RSA 461-A:6 sets the “best interest of the child” legal standard for drafting or modifying a parenting plan. The best interest of the child is determined by up to twelve (12) factors which can be weighed differently by the judge depending on the case, as well as any other factor the Court deems relevant. The legal standard is purposely “open”. It is intended to provide the Family Court the flexibility to make a judgment on what is right for any child, in any situation, when the parents are unable to agree.

NH RSA 461-A:11 is for when the parties want to change the routine schedule after a parenting plan has been ordered. In this statute the Court enumerates nine (9) different factors that permits the Court to modify the routine schedule for the child. A parent must list and prove a factor under this section if they want to change the child’s schedule. However, any other modification request must only prove the best interest of the child standard.

The question facing many family law practitioners concerns with how to best guide parents in an unprecedent event. To be frank, there is no single clear and obvious answer.

The general consensus is that unless someone in the parent’s household has COVID-19, parenting should continue under the parenting plan except for good and compelling cause shown. Parent must have exceedingly severe circumstances to unilaterally deny parenting time to the other parent. Any unilateral decision faces the risk of a contempt motion at a later date for denying parenting time.

The current shelter in place orders permit grocery and pharmacy trips, and certain outdoor activities so long as proper group reduction and social distancing measures are taken. So, facts will need to be more persuasive than something like “I think I am sick” or “I think my child could get sick”.

Although it is true that no hearings will be scheduled until at least May 4, 2020 and/or the termination of the Governor’s State of Emergency due to COVID-19, the Family Court remains open for emergency (ex parte) hearings if there are concerns for your child’s safety and health. For any ex parte motion, the party will need to demonstrate that immediate and irreparable harm will come to the child if the Court does not take preventative action. This cannot be hypothetical. The Court is very wary of people trying to abuse this process during the pandemic, and is denying many ex parte filings.

In addition, the Family Court remains open to receive any and all motions and pleadings. Further, the Court is holding other hearings such as temporary hearings and child support referee hearings to ensure that parenting and child support cases can remain on track. 

Organizations and Courts across the country have tried to develop guidelines for co-parenting during the COVID-19 pandemic. What follows is from the American Academy of Matrimonial Lawyers (AAML) and the Association of Family and Conciliation Courts (AFCC):

“Seven Guidelines for Parents Who Are Divorce/Separated and Sharing Custody of Children During the COVID19 Pandemic

From the leaders of groups that deal with families in crisis:

Susan Myres, President of American Academy of Matrimonial Lawyers (AAML)

Dr. Matt Sullivan, President of Association of Family and Conciliation Courts (AFCC)

Annette Burns, AAML and Former President of AFCC

Yasmine Mehmet, AAML

Kim Bonuomo, AAML

Nancy Kellman, AAML

Dr. Leslie Drozd, AFCC

Dr. Robin Deutsch, AFCC

Jill Peña, Executive Director of AAML

Peter Salem, Executive Director of AFCC

1. BE HEALTHY.

Comply with all CDC and local and state guidelines and model good behavior for your children with intensive hand washing, wiping down surfaces and other objects that are frequently touched, and maintaining social distancing. This also means BE INFORMED. Stay in touch with the most reliable media sources and avoid the rumor mill on social media.

2. BE MINDFUL.

Be honest about the seriousness of the pandemic but maintain a calm attitude and convey to your children your belief that everything will return to normal in time. Avoid making careless comments in front of the children and exposing them to endless media coverage intended for adults. Don't leave the news on 24/7, for instance. But, at the same time, encourage your children to ask questions and express their concerns and answer them truthfully at a level that is age-appropriate.

3. BE COMPLIANT with court orders and custody agreements.

As much as possible, try to avoid reinventing the wheel despite the unusual circumstances. The custody agreement or court order exists to prevent endless haggling over the details of timesharing. In some jurisdictions there are even standing orders mandating that, if schools are closed, custody agreements should remain in force as though school were still in session.

4. BE CREATIVE.

At the same time, it would be foolish to expect that nothing will change when people are being advised not to fly and vacation attractions such as amusement parks, museums and entertainment venues are closing all over the US and the world. In addition, some parents will have to work extra hours to help deal with the crisis and other parents may be out of work or working reduced hours for a time. Plans will inevitably have to change. Encourage closeness with the parent who is not going to see the child through shared books, movies, games and FaceTime or Skype.

5. BE TRANSPARENT.

Provide honest information to your co-parent about any suspected or confirmed exposure to the virus, and try to agree on what steps each of you will take to protect the child from exposure. Certainly both parents should be informed at once if the child is exhibiting any possible symptoms of the virus.

6. BE GENEROUS.

Try to provide makeup time to the parent who missed out, if at all possible. Family law judges expect reasonable accommodations when they can be made and will take seriously concerns raised in later filings about parents who are inflexible in highly unusual circumstances.

7. BE UNDERSTANDING.

There is no doubt that the pandemic will pose an economic hardship and lead to lost earnings for many, many parents, both those who are paying child support and those who are receiving child support. The parent who is paying should try to provide something, even if it can't be the full amount. The parent who is receiving payments should try to be accommodating under these challenging and temporary circumstances.

Adversity can become an opportunity for parents to come together and focus on what is best for the child. For many children, the strange days of the pandemic will leave vivid memories. It's important for every child to know and remember that both parents did everything they could to explain what was happening and to keep their child safe.

Moreover, the Massachusetts Probate and Family Court issued the following open letter about one week ago: https://www.mass.gov/news/open-letter-regarding-co-parenting-during-covid-19-from-chief-justice-john-d-casey.

The most important thing that parents can do right now is be understanding and be kind. If you need help seeking a modification of your court ordered parenting obligations, or want advice on interpreting your current orders through the pandemic, the family law attorneys at Parnell, Michels & McKay have the experience necessary to assist you. Contact us today.

COVID 19 Child Support and Alimony Modifications

Pursuant to the State of New Hampshire’s orders due to concerns about the COVID-19 outbreak, many businesses are shut down and employees are out of work.  While the federal and state governments are working on stimulus packages and the expansion of unemployment benefits, parties that are subject to Court orders for child support and/or alimony may want to take some additional steps.

NH RSA 458-C:7 permits parties to seek a modification of a child support order any time there has been a substantial change in circumstances.  The modification can become effective on the date a party has provided “notice” of the request to modify to the other party. “Notice” means service on the other party or acceptance of service by the other party.

NH RSA 458:19-aa permits parties to seek a modification of an alimony order when there has been a substantial and unforeseeable change of circumstances since the alimony order was entered.

The Court has created a straightforward process to seek a modification of child support or alimony.  To seek a modification, a party needs to prepare and file a Personal Data Sheet and a Petition to Change Court Order with the Court. These forms can be found on the Court’s website.  https://www.courts.state.nh.us/fdpp/forms/index.htm.  As the Court will need to re-open the original divorce or parenting case to address the modification request, the filing party will be required to pay a $252.00 filing fee.  If circumstances warrant, a Motion to Waive Filing Fee can also be filed asking the Court to allow a party to file for a modification without paying the filing fee. A completed and signed Financial Affidavit must be filed at the same time. These forms can also be found on the Court’s website.

After the documents are filed with the  Court and a case is opened, the Court will issue instructions to have the other party served.  Once the other party has been served, a child support hearing will be scheduled.

Although it is true that  no hearings will be scheduled until at least May, 4 2020 due to COVID-19, it is still important to get the Petition to Change Court Order filed now. If a Petition is not filed, the support obligation will continue to be owed and a substantial arrearage can be accrued.  Between the time of filing the Petition to Change Court Order and receipt of the Court’s Orders, parties need to do the best they can to fully comply with the child support or alimony orders.  A Court will not be happy to see a party eating out, making large purchases, etc. while not paying his/her support obligations.

Private agreements between parties suspending the obligation to pay child support are not enforceable unless approved by the Court.  If you and your child’s other parent reach an agreement to suspend or modify the child support obligation, you must file a new Uniform Support Order with the  Court.  Otherwise, the full amount of your obligation will be owed.

If you need help seeking a modification of your court ordered support obligations, the family law attorneys at Parnell, Michels & McKay have the experience necessary to assist you. Contact us today.